Profits at the energy giant fell 18 per cent last year, while underlying replacement cost profits – which strips out oil prices – were 17.6 billion US dollars (£11.2 billion) in the year to December 31.

The group still needs to settle the bill for civil claims for the fatal Gulf of Mexico explosion in 2010, but warned it would only be on ‘reasonable terms’.

Profits in its fourth quarter fell by a less-than-expected 20 per cent to four billion US dollars (£2.5 billion), despite the group being hit with the biggest fine in US history.

It agreed a 4.5 billion US dollar (£2.9 billion) penalty with authorities, which it will pay in instalments over five years.

Some analysts said the better-than-expected result helped the firm lead a rebound for the FTSE 100 Index today after the top flight tumbled on Monday amid fears of a return to eurozone turmoil.

The oil giant’s rise of 2 per cent, up 8.8p to 470.8p, came after it posted better-than-expected fourth quarter profits of four billion US dollars (£2.5 billion).

Sam Wahab, analyst at Seymour Pierce, said: ‘Following a difficult period for the company, we are beginning to see a resolution to BP’s various legal issues following Macondo.

‘Investors may believe that this places the company in a robust financial position ahead of a significant year of upstream activity.’

But Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said that while BP had made much progress during the full year, it was still ‘far from being out of the woods’.

He said: ‘Despite having disposed of 38 billion US dollars of assets to cover the known costs of the Macondo spill, the spectre of the impending trial casts a long shadow on prospects.’